Eternity Law International — News — Regulated Cryptocurrency License in Georgia for Secure Trading

Regulated Cryptocurrency License in Georgia for Secure Trading

Published:
April 4, 2024

Currently, Georgia requires firms functioning in crypto-currency to possess a license from Central Banking facility. Crypto-companies need to be approved National Banking establishment as VASP-structure. Georgian legislative basis is essentially grounded on EU MiCA-rules; it aims to ensure transparency, uniformity and safeguard. This article looks at what modifications the new reality has brought for crypto-business in Georgia.

Our team is first-class professionals in field of launching and licensing commercial structures. We work with all categories of activity permits, particularly, PSP-licenses in Spain, FX-licenses in Switzerland, gambling permits in Malta and much more. Contact our specialists now.

Regulation and privileges of crypto-business in Georgia

Anyone in Georgia may implement crypto-currency deals, such as exchange and storage being in charge to obtain a special license. Practically, there was no legislative basis to supervise these business-activities.

Nevertheless, with beginning of 2023, situation changed: new legislative points appeared demanding registration of firms dealing with cryptocurrency with local authorities.

Activities of VFA-operators cover next-mentioned types of operations.

  1. Operations for VFA transfer, storage and controlling.
  2. Managing functioning of trading platforms.
  3. Exchange, including self-service terminals, in both locally-used and foreign currencies or other digital means.
  4. Converting virtual means into financial tools.
  5. Organization of initial placements.
  6. Providing services related to initial offerings.
  7. Individual portfolios, excluding mass portfolio management.
  8. Providing loans against crypto-currencies.

New legislative basis doesn’t apply to deals not being intended to be transferred or implemented as a payment or investing means, such as loyalty-programs, game points and other types limited to use in closed virtual-space. New law doesn’t cover supervision of NFTs.

How to get a crypto-license in Georgia

To get a permit to become a Crypto Provider, register a firm and make business-activities legal, you need to fulfill a plenty of requirement points related to various aspects.

Director

Firm may hire 1 director with residency if founder and director are different persons. If organization possesses 1 founder, who is a director, it’s mandatory to find a second director.

Director of the company needs to possess a university degree in economics, finance, banking, business administration, auditing, accounting, law, information technology, information analytics or another related field. Working expertise might be accepted as a substitute for education norms when working in a management position in such industry.

  1. Clean before legislative bodies: no previous convictions for serious crimes such as terroristic operations financing or illegal monetary means circulation are needed. It’s essential to avoid violations of business, banking or financial legislative norms.
  2. Fiduciary duties: it’s essential to uphold fiduciary duties to financial establishments and avoid actions being detrimental to service providers.
  3. Reliability: it’s mandatory to avoid breaches of obligations and insolvency, and possess financial stability to avoid bankruptcy.
  4. Avoiding conflicts of interest: it’s prohibited to administer 2 providers of one group.
  5. Presence locally: 1 authorized person representing a firm needs to be located locally for 14-day-period per month.

Our team guarantees you highly-qualified assistance in bringing your business-activities into correspondence with mandatory requirement points. We’ll assist you in getting other permits, particularly, EMI-licenses in Lithuania, Estonia, Latvia, Germany and others.

Beneficiaries of the company

  1. No criminal record for serious economic crimes.
  2. Correspondence with business-making, banking and financial legislative points without practices threatening normal operation of organization or whole sector.
  3. Lack of unfulfilled obligations and insolvency status.

Firm office-space

  1. To register VASP in Georgia, main office-space from where business-activities are managed needs to be present locally.
  2. Main office-premises should be clearly separated from other spaces not used for similar purposes.
  3. Estates and machinery need to meet rules and standards for effective supervision and control of company’s activities.
  4. Firm needs to keep systematic records of its transactions and design mechanisms to ensure transparency.
  5. In case of on-site transactions, specifically when exchanging, installation of video surveillance systems is needed.

Electronic systems

Before starting functioning, it’s mandatory to install soft (electronic) systems, which need to be adapted to scale of business-activities and risks of ML/TF. These systems should automatically detect suspicious transactions using special technologies (DLT).

Firms applying for cryptolicense in Georgia need to submit a detailed service-plan. Supervision authority may demand a demonstration of e-systems used to offer services.

To obtain a permit, you need to submit next-mentioned date about e-systems used to provide services:

  • names of e-systems;
  • manufacturer’s website;
  • location of data about systems;
  • AML/TF-policies.

License applicants need to develop internal guidelines (policies and procedures) to implement a correspondence controlling systems to prevent illegal monetary means circulation. Supervision authority carefully reviews this documentation, so firms need to be prepared to guarantee transparent information about their business-activities.

Additionally, firms need to implement correspondence monitoring systems to prevent illegal monetary means circulation in accordance with 12-point-plan.

Internal AML/TF-instructions

  1. Creation of internal rules to prevent illegal monetary means circulation
  2. Assess risks in accordance with applicable law.
  3. Application of preventive measures in accordance with law.
  4. Implementation of software for verification of persons subject to sanctions.
  5. Deployment of systems for detecting suspicious/unusual transactions.
  6. Preservation of data and documentation in accordance with procedures and deadlines set by law.
  7. Hiring of a person being in charge of functioning of correspondence controlling systems.
  8. Appointment of a member of management apparatus or a person with authoritative-status over effectiveness of correspondence controlling systems.
  9. Conducting an independent audit to confirm effectivity of correspondence controlling systems.
  10. Establishing personnel choosing criteria to recruit qualified and reliable persons.
  11. Implementation of correspondence controlling systems for regular training.

Terms for getting a permit

Authoritative body needs to make a decision on issuing a permit within 2-month-period from date of application sending. Nevertheless, this period may vary if regulator needs supplementary  documentation. It’s mandatory to note that now there aren’t restrictions or prohibitions regarding cryptocurrency at the level of financial regulator or Georgian government.

Taxation

Income tax-rate for business-activities in this category is 20%. Tax on profit received from operations is 15%. Dividends are covered by 5%-tax.

How much does a crypto-license cost in Georgia?

The cost of this type of permit depends on plenty of third-party nuances, and therefore is covered by individual calculation in each case. Our experts will prepare a preliminary price calculation for you before cooperation begins. This way you can estimate the total cost of our services.

Expert services

Our team specializes in providing services for getting licenses for crypto-currencies in Georgia and others, offering a plenty of significant privileges for our clients:

  • experts have in-depth knowledge of legislative and licensing norms, providing highly-qualified support at all phases of getting permits in different countries;
  • we provide individual consultations, bearing in mind unique needs and characteristics of each firm;
  • we provide a fully-covering range of services, including preparation of mandatory documentation, interaction with regulative authorities and advice on compliance with all rules and standards;
  • a wide range of permits and companies for sale, particularly, EMI-licenses in Switzerland and others;
  • lawyers maintain excellent relationships with regulators, resulting in more efficient communication and reduced time-period required to get a permit.

Thanks to our expertise and highly-professional approach, we help clients speed up process of getting a permit and optimize costs.

Businesses for sale

Crypto license in Slovakia for sale

Europe, Slovakia Crypto licenses for sale
This is a new investment opportunity – сrypto license in Slovakia for sale. Please check out the main details regarding this proposal  below. Crypto license for sale: key considerations Clean cryptocompany in Slovakia registered in 2021; Crypto exchange, Virtual wallet, ICOs, IEOs, IDOs; Company is also capable of doing tokenization; Company has its own bank...

Crypto license in Lithuania for sale

Europe, Lithuania Crypto licenses for sale
Below you can see the information regarding the ready-made company with crypto license and bank account in Lithuania for sale This company with crypto license in Lithuania for sale – whats included: License: cryptocurrency and wallet exchange operator. The company has the right to provide cryptocurrency wallet services, exchange cryptocurrency for fiat or vice versa and...

Crypto license in Lithuania with Cyprus VASP License for sale

Europe, Lithuania Crypto licenses for sale
A new investment opportunity – Crypto license in Lithuania with Cyprus VASP License for sale. Please check out the details regarding this proposal below. Crypto company for sale: general provisions regarding the transaction Year of company registration – 2022; Status of the legal entity: Non-operational; Bank accounts: no bank account at the moment; Type of...

You could be interested

Doing business in Serbia

When choosing the country for launching a company, it is important to overview all possible variants and be aware of all features of doing business there. Let’s delve into the details of doing Serbian business. Pros of starting a business in Serbia Serbia has an excellent location in Europe. There are many trade routes between...

Anjouan Gaming License

The gambling license in Anjouan (Comoros Islands)  plays a crucial role in the realm of online entertainment, gearing up for a significant impact in 2024. Despite often being overlooked, recent enhancements have transformed it into a potent force within the competitive business landscape. Strategic Approach: Anjouan has evolved into a central hub for strategic operations,...

Undertakings Collective Investment in Transferable Securities (UCITS)

The Epitome of Investment Excellence In the realm of investment, a distinctive figure stands tall, radiating excellence through a blend of versatility, transparency, and accessibility the UCITS. This official exploration delves into the core attributes of UCITS, explaining their pivotal role in the financial arena. Diversification: A Prudent Approach UCITS epitomize prudent investment through diversification....

MiCA, in lock step after cementing decried, dreaded virtual value AML ‘travel rule’

In an earth shattering turn of events, European Association legislators have introduced a momentous arrangement of rules ready to lay out an extensive, imaginative, and rigid administrative structure inside the domain of computerized cash. These guidelines include a diverse way to deal with guaranteeing monetary wrongdoing consistence and oversight measures for digital forms of money,...

Accounting for cryptocurrencies

There are many problems that can arise for accountants in practice, and for which accounting standards have not been adopted today. Cryptocurrencies are one example of such difficulties. Due to the fact that at the moment there has not been developed and adopted a common standard according to which accountants could know how to account...

International business company registration

Setting up an international-company offshore may seem like a simple and easy process at first glance. In fact, before registering, you need to decide in which country you want to create a legal-entity and study all the opportunities and benefits that are provided at the local level. Even today, not everyone understands why it is...

Related posts

Secure a Trust License in Estonia

According to Estonia trust law, a trust business is an officially established and commercially valid act of trust, by virtue of which a person or organization entrusts one or more assets (financial assets, real estate, etc.) to a trust company with the possibility of transfer, for further profit from them, for interaction with a certain...

Secure Your Trust License in Portugal

Trusts are quite complex organizations in terms of legal features of their formation, establishment and licensing. Portugal’s tax regime, particularly for non-resident or non-resident investors, has been praised by businesses for its ability to engage investments from non-residents and by capital owners seeking an efficient tax haven. However, behind the favorable tax treatment lies a...

Secure a Trust License in Lithuania

Lithuanian legislation allows entrepreneurs from all over the world to offer their clients various financial and investment services based on the appropriate permits. Officially approved permits giving the right to provide financial services are issued by the Bank of Lithuania to legal entities participating in the financial market created and formed at the local level....

PSP license in Georgia

In modern countries, or remittance service providers are controlled by the National Bank of country, which oversees and supervises the remittance system in the country. PSPs are defined as business-companies that supply payment favors, including issuance of payment instruments, acquisition of remittance transmissions, and remittance favors. To control as a remittance favors supplier in Georgia,...

Cryptocurrency trading in Poland

The Polish crypto market does not have a comprehensive regulative system, although it is interpreted by the law. Hence, the digital currency does not belong to the domain of the financial market within the interpretation of Polish law, so basically it is not in the remit of a specific, traditional financial regulation. Though the Polish...

Legalization of Cryptocurrency Trading in the UAE

The regulatory authorities of the UAE have determined the procedure for working with cryptocurrency. Now, investors are given the opportunity to trade and other cryptocurrency transactions within the DWTCA Free Zone – Dubai World Trade Center Authority. An agreement has been concluded between DWTCA and SCA (Securities and Commodity Control Authority), the provisions of which...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank: